Consumers are adapting in response to strained economic conditions, even as inflation has started slowing down.
Eating at home more often remained the norm for the first half of the year among U.S. consumers, but unlike during the pandemic, shoppers lately have been branching out to different grocery locales in search of deals to reduce their food expenses. FMI – The Food Industry Association has observed shoppers’ migration to mass retail channels as they search for deals and value.
“To address higher prices, shoppers are visiting more stores and seeking deals to stretch their dollars, but are now less likely to cut back on the number of items purchased compared to six months or a year ago. This is an opportunity for our industry to continue connecting with shoppers on food-inflation-mitigating solutions,” FMI President and CEO Leslie G. Sarasin said in April.
Demographic-wise, baby boomers were the most concerned about rising food prices (80 percent) as of February 2023, FMI found, with millennials also showcasing elevated levels of cost-wariness (76 percent). On average, consumers spent USD 164 (EUR 153) per week on groceries as of February, up from the USD 148 (EUR 138) weekly spend rate documented by FMI in both February and October of last year.
Sarasin noted in late May that the meaning of “good value” is experiencing a complex metamorphosis for modern consumers at retail. Quality, relevance, experience, and convenience are expanding what constitutes a valuable purchase for shoppers. According to Sarasin and FMI, the “long-held definition of value being measured by a simple equation of higher quantity at a lower price” is transforming.
“Understanding how dramatically grocery shoppers are expanding their definition of value is imperative for the food industry as consumers adjust their purchasing patterns and habits amid continued economic uncertainty,” Sarasin said ...
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